1. Kelly ServiceS
2007 AnnuAl RepoRt
Staffing the World

2. Staffing the World
36 Countries and territories staffing solutions
Australia Commercial
Mexico Kelly Law Registry®
Austria Netherlands Kelly Scientific Resources®
KellyConnect®
Belgium New Zealand CGR/seven
KellyDirect®
Canada Norway
P-Serv
Kelly Educational Staffing®
China Philippines
Talents Technology
Kelly Electronic Assembly Services
Czech Republic Poland
Kelly Light Industrial Services
Denmark Puerto Rico
Outsourcing & Consulting
Kelly Marketing Services
Finland Russia
Kelly HR Consulting®
Kelly Office Services
France Singapore
Germany Spain Kelly® HRfirst®
KellySelect®
Hong Kong Sweden Kelly Management Services®
Hungary Switzerland Professional & Technical Kelly Vendor Management Solutions
India Thailand
access AG
Kelly Automotive Services Group®
Indonesia Turkey
The Ayers Group
Kelly Engineering Resources®
Ireland Ukraine
Kelly® FedSecure®
Italy United Kingdom
Kelly Financial Resources®
Japan United States
Kelly Healthcare Resources®
Luxembourg
Malaysia Kelly IT Resources®

3. Corporate Profile
Staffing the World
Kelly Services, Inc. was established in
1946 by William Russell Kelly, founder
of the modern temporary help industry.
Today, Kelly® is a world leader in human
resources solutions.
Kelly’s HR, staffing, placement, outsourcing, and consulting
services have grown steadily over the years to provide the
comprehensive global talent management our customers need.
Kelly employees work in a variety of professional, technical,
and traditional office disciplines including finance, creative
services, healthcare, science, engineering, law, education,
contact centers, office services, and light industrial.
Last year, the company assigned more than 750,000 employees
in 36 countries and territories. Revenue in 2007 totaled $5.7
billion. Kelly is headquartered in Troy, Michigan, U.S.A.

4. Financial HigHligHts
diluted earningS
revenue from ServiceS
$1.75
$5.7
$5.5 $1.67
$5.2
$4.9
$4.2
$1.09
billions of dollars
$.60
per share
$.14
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
2007 2006 change
(in thousands of dollars, except per share items)
$ 5,667,589
Revenue From Services $ 5,546,778 2.2%
Earnings From Continuing Operations
83,291
Before Taxes 79,512 4.8%
29,567
Income Taxes 22,727 30.1%
53,724
Earnings From Continuing Operations 56,785 (5.4)%
Earnings From Discontinued Operations,
7,292
Net of Tax 6,706 8.7%
61,016
Net Earnings 63,491 (3.9)%
Diluted Earnings Per Share
1.47
Earnings From Continuing Operations 1.56 (5.8)%
.20
Earnings From Discontinued Operations .18 11.1%
1.67
Net Earnings 1.75 (4.6)%
.52
Dividends Per Share .45 15.6%
478,587
Working Capital 463,256 3.3%
788,229
Stockholders’ Equity 758,557 3.9%
1,573,997
Total Assets 1,469,424 7.1%

5. Letter to StockholderS
T his has been a year of strategic action and significant accomplishment for
Kelly Services. I’m pleased to report on our success and provide you with
this update of our activities.
Kelly Services was built
2007 brought unexpected challenges. What began as a promising year
on a strong foundation
unfolded quite differently. The U.S. economy slowed dramatically to
end the year at near-recession levels. Economic uncertainty softened
of core values. Integrity,
demand for temporary employees here in the States and impacted our
Company’s performance.
trust, respect, and
In spite of those conditions, Kelly made progress.
professional excellence
Positive Gains continue to guide us.
For the year, our net earnings declined slightly to $1.67 per share.
Our mission—to serve
However, we set a new sales record of $5.7 billion. Fee income increased
and we continued to see year-over-year improvement in our operating
customers, employees,
margins.
stockholders, and society
Results from our highly skilled professional and technical staffing and
outsourcing and consulting services—both here in the Americas and
by providing a broad range
abroad—were very good. But the true driver of 2007 performance was
our International business, where revenue increased by nearly 20%, fee
of talent management
income grew by almost 50%, and earnings increased over ten fold.
solutions—has helped
There can be no doubt our earnings would have been stronger had the
U.S. economy strengthened. But our performance affirms that we’re on
us become one of the
the right track. The strategic plan we’ve undertaken is playing out well
and proving its value. largest global staffing
Tactical Steps companies today.
It’s increasingly clear that our future success will depend more and more
on our capacity to compete on the world stage. As we move from a
company dominated by U.S. sales to one with a broad global profile,
we will become even more diversified and able to thrive in changing
global economies.
••• 1

6. Letter to StockholderS
Specifically, we are committed to position Kelly for long-term growth through a deliberate, four-point plan:
• Diversify geographically;
• Invest in high-growth, high-margin businesses;
• Accelerate the globalization of professional and technical staffing services; and
• Improve operating margins.
Significant Accomplishments
Kelly’s success increasingly
Let me share with you some of the initiatives we undertook during
the year to help us reach those goals.
depends on our capacity
Global Growth
to compete globally. We’re
We expanded Kelly’s global reach by purchasing the remaining
51% of Tempstaff Kelly, Inc., our joint venture in the Asia-Pacific
committed to diversify
region. Kelly entered four additional international markets through
acquisitions in China, Austria, Poland, and the Czech Republic;
geographically, lessen
and we added two new countries—the Ukraine and Finland—by
growing relationships with existing customers. dependence on U.S. markets
PTSA Expansion and grow our high-margin
In addition to acquiring several higher-margin, specialty staffing
businesses around the world.
firms, we built on healthy worldwide demand for professional and
technically skilled workers by opening more than 50 new PTSA
branches internationally during the year.
Realigned Business Structure
To facilitate our international growth, we implemented a new business structure designed around three
regions: the Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa). Our business leadership,
sales, and marketing teams have also been realigned to support this new structure and accelerate
worldwide expansion.
Streamlined Operations
To become more efficient, we divested a non-core business, Kelly Home Care. We restructured
our UK operations by closing 22 branches there and consolidating our headquarters operations.
In the Americas, we closed or consolidated nearly 60 branch offices and centralized our
payroll processing.
•••
2

7. Tightened Costs
During the year, we began allocating additional headquarters’ costs to appropriate business segments,
which resulted in better expense control and margin improvement. Also, we remained focused on
managing workers’ compensation and unemployment costs. As a result, excluding restructuring charges,
we improved our operating margin by 20 basis points during the year.
Enhanced Value
Finally, we took several steps to broaden our investor base and increase value to our shareholders—
completing a successful secondary offering of more than 5 million shares, authorizing a $50 million stock
repurchase plan, and raising our quarterly dividend by 8%. 2007 marked our 46th consecutive year of
paying a dividend.
Going Forward
Taken together, these actions move us closer to our strategic goals. We remain committed to lessening
our dependence on U.S. markets, strengthening our global presence, and expanding our specialty staffing
throughout the world.
Doing so can only sharpen our competitive edge and accelerate our growth.
Today’s diverse markets are more open than ever before to flexible staffing. Government restrictions
are lifting, technology has erased boundaries, temporary assignments are gaining greater acceptance,
employees have become more adaptable, and the very nature of work is continually changing.
The staffing industry is full of opportunity. Kelly is ready. We’ve set our sights, advanced our strategic
plan, and are building momentum. And you—our stockholders, directors, and employees—fuel our
determination to raise the bar and meet our goals. Thank you for your continued support and belief in
our future.
Carl T. Camden
President and Chief Executive Officer
February 2008
••• 3

8. Directors & officerS
BOARD OF DIReCTORS
Terence e. Adderley Maureen A. Fay, Donald R. Parfet
O.P., Ph.D.
Chairman Managing Director
President Emeritus Apjohn Group, LLC
Carl T. Camden University of Detroit Mercy
B. Joseph White
President and
Verne G. Istock
Chief Executive Officer President
Lead Director University of Illinois
Jane e. Dutton Retired Chairman
Leslie A. Murphy, CPA
William Russell Kelly Professor and President
of Business Administration Bank One Corporation President and Chief Executive Officer
University of Michigan Murphy Consulting, Inc.
(Elected to the Board in February 2008)
SeNIOR OFFICeRS
Jonathan D. Means
James H. Bradley
Carl T. Camden
Senior Vice President,
Senior Vice President
President and
Central Operations and Businesses
Administrative Systems
Chief Executive Officer
W. edward Meisenheimer
Teresa Carroll
George S. Corona
Senior Vice President,
Senior Vice President,
Executive Vice President and
U.S. Commercial
Global Service
General Manager,
Americas
Michael S. Morrow
Michael e. Debs
Michael L. Durik Senior Vice President,
Senior Vice President,
Global Marketing
Corporate Controller,
Executive Vice President and
Chief Accounting Officer, and
Chief Administrative Officer
Peter W. Quigley
Interim Chief Financial Officer
Michael S. Webster Senior Vice President,
Allison M. everett Strategic Customer Relationships
Executive Vice President,
Senior Vice President and
Global-Sales, Service, and
Antonina M. Ramsey
Chief Information Officer
Marketing
Senior Vice President
Shaun M. Fracassi
Leif Agnéus Global Human Resources
Senior Vice President,
Senior Vice President and
Dhirendra Shantilal
U.S. Commercial
General Manager,
Senior Vice President and
EMEA
Rolf E. Kleiner General Manager,
Steven S. Armstrong APAC
Senior Vice President and General Manager,
Outsourcing & Consulting Group
Senior Vice President,
Bernard Tommasini
Technical Services Group
Daniel T. Lis Senior Vice President,
Pamela M. Berklich Outsourcing & Consulting Group
Senior Vice President,
EMEA
General Counsel, and
Senior Vice President,
Corporate Secretary
Americas Sales
•••
4

9. Kelly Services 2007 form 10-k

10. Index to Kelly Services 2007 form 10-k
PART I
Item 1. Business ..........................................................................................................................................................3
Item 1A. Risk Factors .....................................................................................................................................................6
Item 1B. Unresolved Staff Comments .........................................................................................................................11
Item 2. Properties......................................................................................................................................................11
Item 3. Legal Proceedings .........................................................................................................................................11
Item 4. Submission of Matters to a Vote of Security Holders ....................................................................................11
PART II
Item 5. Market for the Registrant’s Common Equity,
Related Stockholder Matters and Issuer Purchases of
Equity Securities ...........................................................................................................................................12
Item 6. Selected Financial Data .................................................................................................................................15
Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations.............................................................................................................16
Item 7A. Quantitative and Qualitative Disclosures About
Market Risk ...................................................................................................................................................32
Item 8. Financial Statements and Supplementary Data............................................................................................33
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure ............................................................................................................33
Item 9A. Controls and Procedures ...............................................................................................................................33
Item 9B. Other Information .........................................................................................................................................33
PART III
Item 10. Executive Officers of the Registrant ..............................................................................................................34
Item 12. Securities Authorized for Issuance under Equity
Compensation Plans .....................................................................................................................................35
PART IV
Item 15. Exhibits, Financial Statement Schedules ......................................................................................................36
Signatures ......................................................................................................................................................................37
Index to Financial Statements and Supplemental Schedule ..............................................................................................38
Index to Exhibits .................................................................................................................................................................72

11. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2007
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
--------------- ----------------
Commission file number 0-1088
KELLY SERVICES, INC.
-----------------------------------------------------------------------
(Exact Name of Registrant as specified in its Charter)
Delaware 38-1510762
------------------------------- -------------------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
999 West Big Beaver Road, Troy, Michigan 48084
---------------------------------------------------------------- ----------------
(Address of Principal Executive Office) (Zip Code)
(248) 362-4444
--------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Class A Common NASDAQ Global Market
Class B Common NASDAQ Global Market
Securities Registered Pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act. Yes [ ] No [X]
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)
of the Act. Yes [ ] No [X]
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No[ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is
not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer [X] Accelerated filer [ ] Non-accelerated filer [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yes [ ] No [X]
1

12. The aggregate market value of the voting and non-voting common equity held by non-affiliates
computed by reference to the price at which the common equity was last sold, or the average bid
and asked price of such common equity, as of the last business day of the registrant’s most
recently completed second fiscal quarter, was approximately $817,021,764.
Registrant had 31,417,388 shares of Class A and 3,459,385 of Class B common stock, par value
$1.00, outstanding as of February 5, 2008.
Documents Incorporated by Reference
The proxy statement of the registrant with respect to its 2008 Annual Meeting of Stockholders is
incorporated by reference in Part III.
2

13. PART I
Unless the context otherwise requires, throughout this Annual Report on Form 10-K the words “Kelly,” “Kelly
Services,” “the Company,” “we,” “us” and “our” refer to Kelly Services, Inc. and its consolidated subsidiaries.
ITEM 1. BUSINESS.
History and Development of Business
Founded by William R. Kelly in 1946, we have provided staffing solutions to customers in a variety of industries
throughout our 61-year history. Our range of staffing solutions and geographic coverage has grown steadily over the
years to match the needs of our customers.
We have evolved from a United States-based company concentrating primarily on traditional office services into a
global staffing leader with a breadth of specialty businesses. We assign professional and technical employees in the
fields of finance and accounting, creative services, education, engineering, information technology, legal, science,
and health care.
We are one of the world’s largest scientific staffing providers, and we rank among the leaders in information
technology, engineering, and financial staffing. These specialty service lines complement our traditional expertise in
office services, contact center, light industrial, and electronic assembly staffing. We also offer innovative staffing
alternative solutions for our customers, including outsourcing, consulting, recruitment, career transition, and vendor
management services.
Geographic Breadth of Services
Headquartered in Troy, Michigan, we serve customers in 36 countries and territories. We provide temporary
employment for more than 750,000 employees annually to a variety of customers around the globe —including more
than 90 percent of the Fortune 500 companies.
We offer staffing solutions to a diversified group of customers through offices in the Americas (United States,
Canada, Puerto Rico, and Mexico); Europe (Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany,
Hungary, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, Turkey,
Ukraine and the United Kingdom); and the Asia-Pacific region (Australia, China, Hong Kong, India, Indonesia, Japan,
Malaysia, New Zealand, the Philippines, Singapore, and Thailand).
Description of Business Segments
Our operations are divided into four principal business segments: Americas - Commercial; Americas -
Professional, Technical and Staffing Alternatives (“Americas – PTSA”); International - Commercial; and
International - Professional, Technical and Staffing Alternatives (“International – PTSA”).
Americas - Commercial
Our Americas - Commercial segment includes: Kelly Office Services, offering trained employees who work in word
processing and data entry and as administrative support staff; KellyConnect, providing staff for contact centers,
technical support hotlines and telemarketing units; Kelly Educational Staffing, the first nationwide program supplying
qualified substitute teachers; Kelly Marketing Services, including support staff for seminars, sales and trade shows;
Kelly Electronic Assembly Services, providing technicians to serve the technology, aerospace and pharmaceutical
industries; Kelly Light Industrial Services, placing maintenance workers, material handlers, assemblers and more;
KellySelect, a temporary to full-time service that provides both customers and temporary staff the opportunity to
evaluate the relationship before making a full-time employment decision; and KellyDirect, a permanent placement
service used across all business units.
3

14. Americas - PTSA
The Americas - PTSA segment includes a number of industry-specific services including: CGR/seven, placing
employees in creative services positions; Kelly Automotive Services Group, placing employees in a variety of
technical, non-technical and administrative positions in major automotive manufacturers and their suppliers; Kelly
Engineering Resources, supplying engineering professionals across all disciplines including aeronautical, chemical,
civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality
and telecommunications; Kelly FedSecure, placing professionals across all skills in jobs requiring security clearances;
Kelly Financial Resources, serving the needs of corporate finance departments, accounting firms and financial
institutions with professional personnel; Kelly Healthcare Resources, providing all levels of healthcare specialists and
professionals to work in hospitals, ambulatory care centers, HMOs and other health insurance companies; Kelly IT
Resources, placing information technology specialists across all IT disciplines; Kelly Law Registry, placing legal
professionals including attorneys, paralegals, contract administrators, compliance specialists and legal
administrators; and Kelly Scientific Resources, providing entry-level to Ph.D. professionals to a broad spectrum of
scientific and clinical research industries.
Also included in the PTSA segment are: Kelly HRfirst, specializing in recruitment process outsourcing programs; Kelly
HR Consulting, providing strategic human capital consulting services and solutions; Kelly Management Services,
specializing in outsourcing solutions that provide operational management of entire departments or business
functions; Kelly Vendor Management Solutions, streamlining the supplier base and delivering contract talent in a
vendor-neutral environment; and The Ayers Group, offering outplacement services and organizational effectiveness
consulting.
International - Commercial
Our International - Commercial segment provides the full range of commercial staffing services that are offered in the
Americas.
International - PTSA
Our International - PTSA segment provides engineering, financial, health care, IT, legal and scientific staffing.
Recruitment process outsourcing, consulting, outsourcing and vendor management are also included in this segment.
Kelly is also placing increased emphasis on cross-border recruitment opportunities.
Financial information regarding our industry segments is included in Part II, Item 8 of this report.
Business Objectives
Our staffing solutions are designed to help customers meet a variety of human resources needs in a flexible, efficient
and cost-effective manner. We offer our customers high standards of quality in the staffing industry. This strong
emphasis on quality is evident throughout our business objectives, including the selection of new customers,
employees and service lines.
We believe we are well equipped to understand, anticipate and respond to our customers’ evolving staffing needs.
We are constantly developing and optimizing innovative staffing solutions to help customers weather economic
fluctuations, control costs and improve productivity.
In every facet of global operations, we are committed to the acquisition and use of technology to streamline ordering,
time-keeping, reporting and other processes. Technology solutions such as Kelly eOrder, Kelly Web Time and Kelly
e-Reporting are available when and where customers need them.
It has been our mission to stay ahead of our customers’ staffing and human resources challenges by defining and
solving specific staffing needs, thereby allowing companies the time and freedom to do what they do best – focus on
their core businesses.
4

15. Business Operations
Service Marks
We own numerous service marks that are registered with the United States Patent and Trademark
Office, the European Union Community Trademark Office and numerous individual country trademark offices.
Seasonality
Our quarterly operating results are affected by the seasonality of our customers’ businesses. Demand for staffing
services historically has been lower during the first and fourth quarters, in part, as a result of holidays, and typically
increases during the second and third quarters of the year.
Working Capital
We believe there are no unusual or special working capital requirements in the staffing services industry.
Customers
We are not dependent on any single customer, or a limited segment of customers. Our largest single customer
accounted for approximately four percent of total revenue in 2007.
Government Contracts
Although we conduct business under various federal, state, and local government contracts, they do not account for a
significant portion of our business.
Competition
The worldwide temporary staffing industry is competitive and highly fragmented. In the United States, approximately
100 competitors operate nationally, and approximately 10,000 smaller companies compete in varying degrees at local
levels. Additionally, several similar staffing companies compete globally. In 2007, our largest competitors were
Adecco, S.A., Manpower, Inc., Randstad Holding N.V., Vedior N.V., Spherion Corporation, Allegis Group and Robert
Half International, Inc.
Key factors that influence our success are geographic coverage, breadth of service, quality of service, and price.
Geographic presence is of utmost importance, as temporary employees are generally unwilling to travel great
distances for assignment, and customers prefer working with companies in their local market. Breadth of service has
become more critical as customers seek “one-stop shopping” for all their staffing needs.
Quality of service is highly dependent on the availability of qualified, competent temporary employees, and our ability
to recruit, screen, train, retain, and manage a pool of employees who match the skills required by particular
customers. Conversely, during an economic downturn, we must balance competitive pricing pressures with the need
to retain a qualified workforce. Price competition in the staffing industry is intense—particularly for office clerical and
light industrial personnel—and pricing pressure from customers and competitors continues to be significant.
Environmental Concerns
Because we are involved in a service business, federal, state or local laws that regulate the discharge of materials
into the environment do not materially impact us.
Employees
We employ approximately 1,400 people at our corporate headquarters in Troy, Michigan, and approximately 8,600
staff members in our international network of company-owned branch offices. In 2007, we assigned more than
750,000 temporary employees with a variety of customers around the globe.
While services may be provided inside the facilities of customers, we remain the employer of record for our temporary
employees. We retain responsibility for employee assignments, the employer’s share of all applicable payroll taxes
and the administration of the employee’s share of these taxes.
5

16. Foreign Operations
For information regarding sales, earnings from operations and long-lived assets by domestic and foreign operations,
please refer to the information presented in the Segment Disclosures note to our consolidated financial statements,
presented in Part II, Item 8 of this report.
Access to Company Information
We electronically file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K
and all amendments to those reports with the Securities and Exchange Commission (“SEC”). The public may read
and copy any of the reports that are filed with the SEC at the SEC’s Public Reference Room at 100 F. Street, NE,
Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling
the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website at www.sec.gov that contains reports,
proxy and information statements and other information regarding issuers that file electronically.
We make available, free of charge, through our Internet website, and by responding to requests addressed to our
director of investor relations, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K and all amendments to those reports. These reports are available as soon as reasonably practicable after
such material is electronically filed with or furnished to the SEC. Our website address is: www.kellyservices.com.
The information contained on our website, or on other websites linked to our website, is not part of this report.
ITEM 1A. RISK FACTORS.
We operate in a highly competitive industry with low barriers to entry, and may be unable to compete
successfully against existing or new competitors.
The worldwide staffing services market is highly competitive with limited barriers to entry. We compete in global,
national, regional and local markets with full-service and specialized temporary staffing companies. While the
majority of our competitors are significantly smaller than us, several competitors, including Adecco S.A., Manpower
Inc., Randstad Holding N.V., Vedior N.V., Spherion Corporation, Allegis Group and Robert Half International, Inc.,
have substantial marketing and financial resources. In particular, Adecco S.A. and Manpower Inc. are considerably
larger than we are and, thus, have significantly more marketing and financial resources than we do. Price
competition in the staffing industry is intense, particularly for the provision of office clerical and light industrial
personnel. We expect that the level of competition will remain high, which could limit our ability to maintain or
increase our market share or profitability.
There has been a significant increase in the number of customers consolidating their staffing services purchases with
a single provider or small group of providers. The trend to consolidate purchases has in some cases made it more
difficult for us to obtain or retain customers. We also face the risk that our current or prospective customers may
decide to provide similar services internally. As a result, there can be no assurance that we will not encounter
increased competition in the future.
Our business is significantly affected by fluctuations in general economic conditions.
Demand for staffing services is significantly affected by the general level of economic activity and unemployment in
the United States and the other countries in which we operate. When economic activity increases, temporary
employees are often added before full-time employees are hired. As economic activity slows, however, many
companies reduce their use of temporary employees before laying off full-time employees. We may also experience
more competitive pricing pressure during periods of economic downturn. A substantial portion of our revenues and
earnings are generated by our business operations in the United States. Any significant economic downturn in the
United States or the other countries in which we operate could have a material adverse effect on our business,
financial condition and results of operations.
6

17. Our loss of major customers or the deterioration of their financial condition or prospects could have a
material adverse effect on our business.
Our business strategy is increasingly focused on serving large corporate customers through high volume global
service agreements. While our strategy is intended to enable us to increase our revenues and earnings from our
major corporate customers, the strategy also exposes us to increased risks arising from the possible loss of major
customer accounts. In addition, some of our customers are in industries, such as the automotive and manufacturing
industries, that have experienced adverse business and financial conditions in recent years. The deterioration of the
financial condition or business prospects of these customers could reduce their need for temporary employment
services, and result in a significant decrease in the revenues and earnings we derive from these customers.
Our customer contracts contain termination provisions that could decrease our revenues and earnings.
Most of our customer contracts can be terminated by the customer on short notice without penalty. Our customers
are, therefore, not contractually obligated to continue to do business with us in the future. This creates uncertainty
with respect to the revenues and earnings we may recognize with respect to our customer contracts.
We depend on our ability to attract and retain qualified temporary personnel.
We depend on our ability to attract qualified temporary personnel who possess the skills and experience necessary to
meet the staffing requirements of our customers. We must continually evaluate our base of available qualified
personnel to keep pace with changing customer needs. Competition for individuals with proven professional skills is
intense, and demand for these individuals is expected to remain strong for the foreseeable future. There can be no
assurance that qualified personnel will continue to be available in sufficient numbers and on terms of employment
acceptable to us. Our success is substantially dependent on our ability to recruit and retain qualified temporary
personnel.
We may be exposed to employment-related claims and losses that could have a material adverse effect on
our business.
Temporary staffing services providers employ and assign personnel in the workplaces of other businesses. The risks
of these activities include possible claims relating to:
• discrimination and harassment;
• employment of illegal aliens;
• violations of wage and hour requirements;
• retroactive entitlement to employee benefits; and
• errors and omissions by our temporary employees, particularly for the actions of professionals such as
attorneys, accountants and scientists.
We are also subject to potential risks relating to misuse of customer proprietary information, misappropriation of
funds, damage to customer facilities due to negligence of temporary employees, criminal activity and other similar
claims. We may incur fines and other losses or negative publicity with respect to these problems. In addition, these
claims may give rise to litigation, which could be time-consuming and expensive. There can be no assurance that the
corporate policies we have in place to help reduce our exposure to these risks will be effective or that we will not
experience losses as a result of these risks. There can also be no assurance that the insurance policies we have
purchased to insure against certain risks will be adequate or that insurance coverage will remain available on
reasonable terms or be sufficient in amount or scope of coverage.
Damage to our key data centers could affect our ability to sustain critical business applications.
Many business processes critical to the Company’s continued operation are housed in the Company’s data center
situated within the corporate headquarters complex as well as regional data centers in Asia-Pacific and Europe.
Those processes include, but are not limited to, payroll, customer reporting and order management. The loss of a
data center creates a substantial risk of business interruption; however, steps have been taken to protect the
Company’s operations, principally through redundant back-up processes.
7

18. Our investment in the PeopleSoft payroll, billing and accounts receivable project may not yield its intended
results.
In the fourth quarter of 2004, we commenced the PeopleSoft project to replace our payroll, billing and accounts
receivable information systems in the United States, Canada, Puerto Rico, the United Kingdom and Ireland. We
anticipate spending approximately $90 to $94 million on the PeopleSoft project by the end of 2009. Although this
technology initiative is intended to increase productivity and operating efficiencies, the PeopleSoft project may not
yield its intended results. Any delays in completing, or an inability to successfully complete, this technology initiative
or an inability to achieve the anticipated efficiencies could adversely affect our operations, liquidity and financial
condition.
We are highly dependent on our senior management and the continued performance and productivity of our
local management and field personnel.
We are highly dependent on the continued efforts of the members of our senior management. We are also highly
dependent on the performance and productivity of our local management and field personnel. The loss of any of the
members of our senior management may cause a significant disruption in our business. In addition, the loss of any of
our local managers or field personnel may jeopardize existing customer relationships with businesses that use our
services based on relationships with these individuals. The loss of the services of members of our senior
management could have a material adverse effect on our business.
Our business is subject to extensive government regulation, which may restrict the types of employment
services we are permitted to offer or result in additional tax or other costs that reduce our revenues and
earnings.
The temporary employment industry is heavily regulated in many of the countries in which we operate. Changes in
laws or government regulations may result in prohibition or restriction of certain types of employment services we are
permitted to offer or the imposition of new or additional benefit, licensing or tax requirements that could reduce our
revenues and earnings. There can be no assurance that we will be able to increase the fees charged to our
customers in a timely manner and in a sufficient amount to cover increased costs as a result of any changes in laws
or government regulations. Any future changes in laws or government regulations may make it more difficult or
expensive for us to provide staffing services and could have a material adverse effect on our business, financial
condition and results of operations.
We conduct a significant portion of our operations outside of the United States and we are subject to risks
relating to our international business activities, including fluctuations in currency exchange rates.
We conduct our business in 36 countries and territories including the United States. Our operations outside the
United States are subject to risks inherent in international business activities, including:
• fluctuations in currency exchange rates;
• varying economic and political conditions;
• differences in cultures and business practices;
• differences in tax laws and regulations;
• differences in accounting and reporting requirements;
• changing and, in some cases, complex or ambiguous laws and regulations; and
• litigation and claims.
Our operations outside the United States are reported in the applicable local currencies and then translated into U.S.
dollars at the applicable currency exchange rates for inclusion in our consolidated financial statements. Exchange
rates for currencies of these countries may fluctuate in relation to the U.S. dollar and these fluctuations may have an
adverse or favorable effect on our operating results when translating foreign currencies into U.S. dollars.
8

19. If we fail to maintain effective internal control over our financial reporting, we may cause investors to lose
confidence in our reported financial information, which could have a negative effect on the trading price of
our stock.
Pursuant to Section 404 of the Sarbanes-Oxley Act, our management is required to include in our Annual Report on
Form 10-K a report that assesses the effectiveness of our internal control over financial reporting, as defined in Rule
13a-15(f) under the Securities Exchange Act. Our Annual Report on Form 10-K is also required to include an
attestation report of our independent registered public accounting firm on the effectiveness of our internal controls.
Our efforts to comply with Section 404 have resulted in, and are likely to continue to result in, significant costs, the
commitment of time and operational resources and the diversion of management’s attention. If our management
identifies one or more material weaknesses in our internal control over financial reporting, we will be unable to assert
that our internal controls are effective. If we are unable to assert that our internal control over financial reporting is
effective, or if our independent auditors are unable to attest that our management’s report is fairly stated or they are
unable to express an opinion on the effectiveness of our internal controls, our business may be harmed. Market
perception of our financial condition and the trading price of our stock may also be adversely affected and customer
perception of our business may suffer.
Our controlling stockholder exercises voting control over our company and has the ability to elect or remove
from office all of our directors.
Terence E. Adderley, the Chairman of our board of directors, and certain trusts with respect to which he acts as
trustee or co-trustee, control approximately 92.9% of the outstanding shares of Kelly Class B common stock, which is
the only class of our common stock entitled to voting rights. Mr. Adderley is therefore able to exercise voting control
with respect to all matters requiring stockholder approval, including the election or removal from office of all of our
directors.
We are not subject to most of the listing standards that normally apply to companies whose shares are
quoted on the NASDAQ Global Market.
Our Class A and Class B common stock are quoted on the NASDAQ Global Market. Under the listing standards of
the NASDAQ Global Market, we are deemed to be a “controlled company” by virtue of the fact that Terence E.
Adderley, the Chairman of our board of directors, and certain trusts of which he acts as trustee or co-trustee have
voting power with respect to more than fifty percent of our outstanding voting stock. A controlled company is not
required to have a majority of its board of directors comprised of independent directors. Director nominees are not
required to be selected or recommended for the board’s selection by a majority of independent directors or a
nominations committee comprised solely of independent directors, nor do the NASDAQ Global Market listing
standards require a controlled company to certify the adoption of a formal written charter or board resolution, as
applicable, addressing the nominations process. A controlled company is also exempt from NASDAQ Global
Market’s requirements regarding the determination of officer compensation by a majority of independent directors or a
compensation committee comprised solely of independent directors. A controlled company is required to have an
audit committee composed of at least three directors, who are independent as defined under the rules of both the
Securities and Exchange Commission and the NASDAQ Global Market. The NASDAQ Global Market further
requires that all members of the audit committee have the ability to read and understand fundamental financial
statements and that at least one member of the audit committee possess financial sophistication. The independent
directors must also meet at least twice a year in meetings at which only they are present.
We currently comply with certain of the listing standards of the NASDAQ Global Market that do not apply to controlled
companies. Our compliance is voluntary, however, and there can be no assurance that we will continue to comply
with these standards in the future.
9

20. Provisions in our certificate of incorporation and bylaws and Delaware law may delay or prevent an
acquisition of our company.
Our certificate of incorporation and bylaws contain provisions that could make it harder for a third party to acquire us
without the consent of our board of directors. For example, our certificate of incorporation establishes a classified or
“staggered” board of directors, which means that only approximately one third of our directors are required to stand
for election at each annual meeting of our stockholders. In addition, if a potential acquirer were to make a hostile bid
for us, the acquirer would not be able to call a special meeting of stockholders to remove our board of directors or act
by written consent without a meeting. The acquirer would also be required to provide advance notice of its proposal
to replace directors at any annual meeting, and would not be able to cumulate votes at a meeting, which would
require the acquirer to hold more shares to gain representation on the board of directors than if cumulative voting
were permitted. In addition, our certificate of incorporation requires the approval of the holders of at least 75% of our
Class B common stock for certain transactions involving our company, including a merger, consolidation or sale of all
or substantially all of our assets that has not been approved by our board of directors.
Our board of directors also has the ability to issue additional shares of common stock that could significantly dilute
the ownership of a hostile acquirer. In addition, Section 203 of the Delaware General Corporation Law limits mergers
and other business combination transactions involving 15 percent or greater stockholders of Delaware corporations
unless certain board or stockholder approval requirements are satisfied. These provisions and other similar
provisions make it more difficult for a third party to acquire us without negotiation.
Our board of directors could choose not to negotiate with an acquirer that it did not believe was in our strategic
interests. If an acquirer is discouraged from offering to acquire us or prevented from successfully completing a hostile
acquisition by these or other measures, you could lose the opportunity to sell your shares at a favorable price.
The holders of shares of our Class A common stock are not entitled to voting rights.
Under our certificate of incorporation, the holders of shares of our Class A common stock are not entitled to voting
rights, except as otherwise required by Delaware law. As a result, Class A common stock holders do not have the
right to vote for the election of directors or in connection with most other matters submitted for the vote of our
stockholders.
Our stock price may be subject to significant volatility and could suffer a decline in value.
The market price of our common stock may be subject to significant volatility. We believe that many factors, including
several which are beyond our control, have a significant effect on the market price of our common stock. These
include:
• actual or anticipated variations in our quarterly operating results;
• announcements of new services by us or our competitors;
• announcements relating to strategic relationships or acquisitions;
• changes in financial estimates by securities analysts;
• changes in general economic conditions;
• actual or anticipated changes in laws and government regulations;
• changes in industry trends or conditions; and
• sales of significant amounts of our common stock or other securities in the market.
In addition, the stock market in general, and the NASDAQ Global Market in particular, have experienced significant
price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of
listed companies. These broad market and industry factors may seriously harm the market price of our common
stock, regardless of our operating performance. In the past, securities class action litigation has often been instituted
following periods of volatility in the market price of a company’s securities. A securities class action suit against us
could result in substantial costs, potential liabilities and the diversion of our management’s attention and resources.
Further, our operating results may be below the expectations of securities analysts or investors. In such event, the
price of our common stock may decline.
10

21. ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 2. PROPERTIES.
We own our headquarters in Troy, Michigan, where corporate, subsidiary and divisional offices are currently located.
The original headquarters building was purchased in 1977. Headquarters operations were expanded into additional
buildings purchased in 1991, 1997 and 2001.
The combined usable floor space in the headquarters complex is approximately 350,000 square feet, and an
additional 26,000 square feet is leased nearby. Our buildings are in good condition and are currently adequate for
their intended purpose and use. We also own undeveloped land in Troy and Northern Oakland County, Michigan, for
possible future expansion.
Branch office business is conducted in leased premises with the majority of leases being fixed for terms of generally
five years in the United States and 5 to 10 years outside the United States. We own virtually all of the office furniture
and the equipment used in our corporate headquarters and branch offices.
ITEM 3. LEGAL PROCEEDINGS.
In November 2003, an action was commenced in the United States Bankruptcy Court for the Southern District of New
York, Enron Corp. (“Enron”) v. J.P. Morgan Securities, Inc., et al., against approximately 100 defendants, including
Kelly Properties, Inc., a wholly-owned subsidiary of Kelly Services, Inc., who invested in Enron's commercial paper.
The Complaint alleges that Enron's October 2001 buyback of its commercial paper is a voidable preference under the
bankruptcy laws, constitutes a fraudulent conveyance, and that we received prepayment of approximately $10 million,
$5 million of which is related to Enron commercial paper purchased by us from Lehman Brothers or its affiliate,
Lehman Commercial Paper, Inc. (“Lehman”), and $5 million of which was purchased by us from Goldman Sachs &
Co. Solely to avoid the cost of continued litigation, we have reached a confidential settlement with Enron, Lehman
and certain other defendants of all claims arising from our purchase of Enron commercial paper from Lehman. The
settlement, which involves a payment by us in an amount not material to our results of operations or financial
position, was approved on July 27, 2007 by the Bankruptcy Court presiding over the matter. The settlement became
final on August 7, 2007. The terms of the settlement did not have a material adverse effect on our results of
operations or financial position. We intend to continue to vigorously defend the remaining claims arising from the
purchase of Enron commercial paper from Goldman Sachs & Co., and believe we have meritorious defenses to these
remaining claims but are unable to predict the outcome of the proceedings.
We are the subject of a class action lawsuit brought on behalf of employees working in the State of California. The
claims in the lawsuit relate to alleged misclassification of personal attendants as exempt and not entitled to overtime
compensation under state law and alleged technical violations of a state law governing the content of employee pay
stubs. On April 30, 2007, the Court certified two sub-classes that correspond to the claims in the case. We are
currently preparing motions for summary judgment on both certified claims and will continue to vigorously defend the
lawsuit. We believe that we have meritorious defenses to the claims but are unable to predict the outcome of the
proceedings.
We are also involved in various legal proceedings occurring in the normal course of our business. In the opinion of
management, adequate provision has been made for losses that are likely to result from these proceedings.
Disclosure of Certain IRS Penalties
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no matters submitted to a vote of security holders in the fourth quarter of 2007.
11

22. PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information and Dividends
Our Class A and Class B common stock is traded on the NASDAQ Global Market under the symbols “KELYA” and
“KELYB,” respectively. The high and low selling prices for our Class A common stock and Class B common stock as
quoted by the NASDAQ Global Market and the dividends paid on the common stock for each quarterly period in the
last two fiscal years are reported below:
Per share amounts (in dollars)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
2007
Class A common
High $ 32.82 $ 33.97 $ 28.14 $ 24.39 $ 33.97
Low 28.04 26.73 19.47 18.20 18.20
Class B common
High 32.10 36.89 31.00 34.90 36.89
Low 26.05 28.00 20.00 21.00 20.00
Dividends .125 .125 .135 .135 .52
2006
Class A common
High $ 28.07 $ 28.75 $ 30.00 $ 30.39 $ 30.39
Low 25.55 25.71 25.75 26.99 25.55
Class B common
High 28.78 30.35 27.85 32.71 32.71
Low 25.15 25.12 26.00 27.35 25.12
Dividends .10 .10 .125 .125 .45
Holders
The number of holders of record of our Class A and Class B common stock were 5,394 and 417, respectively, as of
February 5, 2008.
Recent Sales of Unregistered Securities
None.
12

23. Issuer Purchases of Equity Securities
Maximum Number
Total Number (or Approximate
of Shares (or Dollar Value) of
Total Number Average Units) Purchased Shares (or Units)
of Shares Price Paid as Part of Publicly That May Yet Be
(or Units) per Share Announced Plans Purchased Under the
Period Purchased (or Unit) or Programs Plans or Programs
October 1, 2007 through
November 4, 2007 85,833 $ 20.43 85,503 $ 35,754
November 5, 2007 through
December 2, 2007 554,426 20.13 554,426 $ 24,595
December 3, 2007 through
December 30, 2007 484,482 19.22 483,811 $ 15,297
Total 1,124,741 $ 19.76 1,123,740
On August 8, 2007, the board of directors authorized the repurchase of up to $50 million of the Company’s
outstanding Class A common shares. The Company intends to repurchase shares under the program, from time to
time, in the open market. The repurchase program has a term of 24 months. We may also reacquire shares outside
the program in connection with the surrender of shares to cover taxes due upon the vesting of restricted stock held by
employees. 1,001 shares were reacquired in transactions outside the repurchase program during the Company’s
fourth quarter.
13

24. Performance Graph
The following graph compares the cumulative total return of our Class A common stock with that of the S&P MidCap
400 Index and the S&P 1500 Human Resources and Employment Services Index for the five years ended December
31, 2007. The graph assumes an investment of $100 on December 31, 2002 and that all dividends were reinvested.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Assumes Initial Investment of $100
December 31, 2002 – December 31, 2007
300.00
250.00
200.00
150.00
100.00
50.00
2002 2003 2004 2005 2006 2007
KELLY SVCS A S&P 400 MidCap Index - Total Return S&P 1500 Human Resources and Employment Services Index
2002 2003 2004 2005 2006 2007
Kelly Services, Inc. $100.00 $117.39 $125.88 $110.90 $124.43 $81.96
S&P MidCap 400 Index $100.00 $135.64 $158.01 $177.85 $196.19 $211.79
S&P 1500 Human Resources and
Employment Services Index $100.00 $150.20 $180.80 $208.27 $249.08 $190.10
14

25. ITEM 6. SELECTED FINANCIAL DATA.
The following table summarizes selected financial information of Kelly Services, Inc. and its subsidiaries for each of
the most recent five fiscal years. This table should be read in conjunction with the other financial information,
including quot;Management's Discussion and Analysis of Financial Condition and Results of Operationsquot; and financial
statements included elsewhere in this report.
2004 (1)
(In millions except per share amounts) 2007 2006 2005 2003
Revenue from services $ 5,667.6 $ 5,546.8 $ 5,186.4 $ 4,863.4 $ 4,199.2
Earnings from continuing operations 53.7 56.8 37.7 22.2 2.9
Earnings from discontinued operations, net of tax (3) 7.3 6.7 1.6 (1.0) 2.0
Net earnings 61.0 63.5 39.3 21.2 4.9
Basic earnings per share:
Earnings from continuing operations 1.48 1.58 1.06 0.63 0.08
Earnings from discontinued operations 0.20 0.19 0.04 (0.03) 0.06
Net earnings 1.68 1.76 1.10 0.60 0.14
Diluted earnings per share:
Earnings from continuing operations 1.47 1.56 1.05 0.63 0.08
Earnings from discontinued operations 0.20 0.18 0.04 (0.03) 0.06
Net earnings 1.67 1.75 1.09 0.60 0.14
Dividends per share
Classes A and B common 0.52 0.45 0.40 0.40 0.40
Working capital (2) 478.6 463.3 428.0 413.1 380.2
Total assets 1,574.0 1,469.4 1,312.9 1,249.8 1,139.2
Total noncurrent liabilities 200.5 142.6 119.9 115.8 111.7
(1) Fiscal year included 53 weeks.
(2) Beginning in 2005, restricted stock was reclassified from accrued payroll and related taxes to additional paid-in capital,
long-term deferred rent was reclassified from accounts payable to other long-term liabilities and long-term accrued disability
was reclassified from accrued payroll and related taxes to other long-term liabilities. Prior periods were reclassified for
comparability. The effect of these reclassifications was to increase working capital by $7.9 million in 2004 and $6.9 million
in 2003.
(3) As discussed in Note 3 to the financial statements, Kelly Home Care (quot;KHCquot;), a business unit of the Americas - PTSA
segment, was sold effective March 31, 2007 for an after-tax gain of $6.2 million. Additionally, Kelly Staff Leasing (quot;KSLquot;),
previously a business unit of the Americas - PTSA segment, was sold effective December 31, 2006 for an after-tax
gain of $2.3 million. In accordance with the provisions of SFAS No. 144, quot;Accounting for the Impairment or Disposal
of Long-Lived Assets,quot; the gains on the sales as well as KHC's and KSL's results of operations for the current
and prior periods have been reported as discontinued operations in the Company's statements of earnings.
15

26. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
Executive Overview
During 2007, we made good progress on our strategic plan to diversify geographically, invest in high-growth, high-
margin businesses, accelerate globalization of our professional and technical staffing services and improve operating
margins. Our key strategic accomplishments included:
• Divesting Kelly Home Care Services, a non-core business.
• Closing and/or consolidating 58 branches in the Americas.
• Restructuring our UK operations, closing 22 branches and consolidating three headquarters locations.
• Expanding our global presence by entering six new international markets, four through acquisitions and two by
growing existing global customer relationships.
• Purchasing the remaining 51% of our joint venture, Kelly Tempstaff, extending our services in the Asia-Pacific
market.
• And opening more than 50 new Professional, Technical and Staffing Alternatives branches around the world to
meet growing demand for technically skilled, professional workers.
Additionally, to tighten expense controls, increase accountability and boost operating margins, we consolidated
several US payroll centers. That move served to streamline costs and improved efficiencies, while allowing us to
better manage unemployment and workers’ compensation costs in the US. To increase value to shareholders, we
authorized a $50 million stock repurchase plan in August and increased our quarterly dividend by 8% during the third
quarter.
Our greatest challenge as we enter 2008 remains the US staffing market, where we do nearly two-thirds of our
business. While nonfarm payroll growth continued in 2007, temporary employment fell, dropping the temporary
employment penetration rate for much of 2007.
Despite the soft labor market in the US, global demand for highly skilled, credentialed temporary workers continues.
In Europe, we believe deregulation will support new opportunities for temporary staffing. In Asia, expansion
continues, as the need for professional and technical workers is ongoing and acceptance of temporary workers
grows.
As we look ahead, our sights remain focused on investing and expanding globally, reducing our US dependency,
gaining greater scale internationally, increasing our fee-based and higher-margin staffing services, continuing to
improve operating margins and positioning Kelly for long-term growth.
Results of Operations
2007 versus 2006
Revenue from services for 2007 totaled $5.7 billion, an increase of 2.2% from 2006. This was the result of an
increase in average hourly bill rates of 4.6%, partially offset by a decrease in hours worked of 2.8%. Fee based
income, which is included in revenue from services, totaled $136.3 million, or 2.4% of total revenue for 2007, an
increase of 31.8% as compared to $103.4 million in 2006. Reflecting the economic slowdown in the U.S. market,
revenue from services decreased from 2006 in the Americas – Commercial and Americas – PTSA business
segments. Revenue from services increased from 2006 in both the International – Commercial and International –
PTSA business segments.
16

27. Compared to 2006, the U.S. dollar was weaker against many foreign currencies, including the euro, the British pound
and the Canadian dollar. As a result, our U.S. dollar translated revenue from services was slightly higher than would
have otherwise been reported. On a constant currency basis, 2007 revenue from services decreased 0.6% as
compared with the prior year. When we use the term “constant currency,” it means that we have translated financial
data for 2007 into U.S. dollars using the same foreign currency exchange rates that we used to translate financial
data for 2006. We believe that constant currency measurements are an important analytical tool to aid in
understanding underlying operating trends without distortion due to currency fluctuations. The table below
summarizes the impact of foreign exchange adjustments on revenue from services for 2007:
Revenue from Services
2007 2006 % Change
(In millions of dollars)
Revenue from Services - Constant Currency:
Americas - Commercial $ 2,745.7 $ 2,916.1 (5.8) %
Americas - PTSA 1,104.9 1,108.3 (0.3)
Total Americas - Constant Currency 3,850.6 4,024.4 (4.3)
International - Commercial 1,480.0 1,378.5 7.4
International - PTSA 182.8 143.8 27.1
Total International - Constant Currency 1,662.7 1,522.4 9.2
Total Revenue from Services - Constant Currency 5,513.3 5,546.8 (0.6)
Foreign Currency Impact 154.3 -
Revenue from Services $ 5,667.6 $ 5,546.8 2.2 %
Gross profit of $989.1 million was 9.1% higher than 2006. Gross profit as a percentage of revenues was 17.5% in
2007 and increased 1.2 percentage points compared to the 16.3% rate recorded in the prior year. Compared to the
prior year, the gross profit rate increased in all four business segments.
During the first quarter of 2007, the Company realigned its operations into four reporting segments – Americas –
Commercial, Americas – PTSA, International – Commercial and International – PTSA. The Americas include the
U.S. operations, as well as Canada, Mexico and Puerto Rico, which were previously included in International. In
addition, corporate expenses that directly support the operating units have been allocated to all four segments. Prior
periods were reclassified to conform to the current presentation.
The improvement in the gross profit rate is due to lower payroll tax rates and workers’ compensation costs measured
as a percentage of direct wages and higher fee based income. Fee based income has a significant impact on gross
profit rates. There are very low direct costs of services associated with fee based recruitment income. Therefore,
increases or decreases can have a disproportionate impact on gross profit rates. The gross profit rate also includes
the effect of the French payroll tax credits noted below.
During the second quarter of 2007, the French government changed the method of calculating payroll tax credits,
retroactive to the beginning of 2006 and on a go-forward basis until October 1, 2007. As a result, Kelly recognized a
total credit of $5.0 million in 2007, of which $2.6 million related to 2006.
As more fully described in Critical Accounting Estimates, we regularly update our estimates of the ultimate cost of
open workers’ compensation claims. As a result, during 2007, we reduced the estimated cost of prior year workers’
compensation claims by $11.6 million. This compares to a similar adjustment reducing prior year workers’
compensation claims by $7.7 million in 2006.
Selling, general and administrative expenses of $909.0 million were 9.7% higher than last year. Selling, general and
administrative expenses expressed as a percentage of revenues (“expense rate as a percentage of revenues”) were
16.0% in 2007, a 1.1 percentage point increase compared to the 14.9% rate in 2006.
17

28. Included in selling, general and administrative expenses are $8.9 million of expenses related to the Americas and UK
restructuring actions. See the “Restructuring – UK Operations” and “Restructuring – Americas Operations” sections
for further discussion. The remaining increase in selling, general and administrative expenses is due primarily to
growth in compensation-related costs.
Other income, net for 2007 was income of $3.2 million, compared to $1.5 million in 2006. The improvement is
primarily attributable to an increase in interest income related to higher U.S. interest rates earned on higher average
cash balances compared to last year.
The effective income tax rate on continuing operations for 2007 was 35.5%, higher than last year’s rate of 28.6%.
The majority of the increase in the effective tax rate is a result of an increase in losses in certain international
locations, particularly the UK, for which no income tax benefit is provided, and, in the US, the expiration of work
opportunity tax credits related to Hurricane Katrina.
Earnings from continuing operations were $53.7 million in 2007, compared to $56.8 million in 2006. Included in
earnings from continuing operations are $7.8 million of expenses, net of tax, related to the UK and Americas
restructuring actions and $3.3 million of French payroll tax credits, net of tax.
During the first quarter of 2007, we sold the Kelly Home Care (“KHC”) business unit. Accordingly, 2006 results of
operations were revised to remove KHC’s operating results from continuing operations. Earnings from discontinued
operations, which include KHC’s and Kelly Staff Leasing’s (“KSL’s”) operating results, totaled $7.3 million for 2007
and include the $6.2 million gain, net of tax, on the sale of KHC. Earnings from discontinued operations for 2006
totaled $6.7 million and include the $2.3 million gain, net of tax, on the sale of KSL.
Net earnings in 2007 were $61.0 million, or a 3.9% decrease compared to 2006. Diluted earnings per share in 2007
were $1.67, as compared to diluted earnings per share of $1.75 in 2006.
Americas – Commercial
2007 2006 Change
(In millions of dollars)
Revenue from Services $ 2,759.4 $ 2,916.1 (5.4) %
Earnings from Operations 88.1 102.9 (14.5)
Gross profit rate 15.9 % 15.4 % 0.5 %
Expense rates:
% of revenue 12.7 11.8 0.9
% of gross profit 79.9 77.0 2.9
Operating margin 3.2 3.5 (0.3)
Reflecting the soft labor market in the US, revenue from services in the Americas - Commercial segment, which
totaled $2.8 billion for 2007, decreased 5.4% compared to the $2.9 billion reported for 2006. This was the result of a
9.0% decrease in hours worked, partially offset by a 4.0% increase in average hourly bill rates. Fee based income
totaled $18.9 million in 2007, compared to $19.4 million in 2006, a decrease of 3.0%. Year-over-year revenue
comparisons reflect decreases of 4.3% in the first quarter, 5.7% in the second quarter and 5.7% in the third quarter,
and 5.9% in the fourth quarter. Americas - Commercial revenue from services represented 48.7% of total Company
revenue from services for 2007 and 52.5% for 2006.
Americas - Commercial earnings from operations totaled $88.1 million for 2007, compared to earnings of $102.9
million last year, a decrease of 14.5%. The 0.3 percentage point decrease in the operating margin reflected a 0.9
percentage point increase in the expense rate as a percentage of revenues, partially offset by a 0.5 percentage point
increase in the gross profit rate.
18

29. The 0.5 percentage point increase in the gross profit rate was principally due to lower workers’ compensation costs
and reduced payroll taxes. As noted above, we revised our estimate of the cost of outstanding workers’
compensation claims and, accordingly, reduced expense in 2007. Of the total $11.6 million expense reduction in
2007, $10.4 million was credited to Americas - Commercial. This compares to a similar adjustment reducing expense
by $7.0 million in 2006.
Selling, general and administrative expenses increased by 1.4% as compared to the prior year and, as a percentage
of revenues, were 12.7% for 2007 and 11.8% for 2006. Included in Americas – Commercial selling, general and
administrative expenses for 2007 is $3.0 million related to the branch restructuring. The remaining increase in
selling, general and administrative expenses was due primarily to the growth in compensation costs.
Americas - PTSA
2007 2006 Change
(In millions of dollars)
Revenue from Services $ 1,105.8 $ 1,108.3 (0.2) %
Earnings from Operations 59.2 58.1 1.8
Gross profit rate 18.7 % 17.1 % 1.6 %
Expense rates:
% of revenue 13.3 11.8 1.5
% of gross profit 71.4 69.3 2.1
Operating margin 5.4 5.2 0.2
Revenue from services in the Americas - PTSA segment totaled $1.1 billion in both 2007 and 2006. This reflected a
decrease in hours worked of 6.0%, partially offset by an increase in average billing rates of 6.7% for the professional
and technical staffing businesses. Fee based income totaled $30.5 million in 2007 and $24.3 million in 2006. On a
year-over-year basis, revenue decreased 6.2% in the first quarter and 1.9% in the second quarter, and increased
1.6% in the third quarter and 5.6% in the fourth quarter. Americas - PTSA revenue represented 19.5% of total
Company revenue in 2007 and 20.0% in 2006.
Kelly Health Care, Kelly Management Services, HRfirst and Kelly Vendor Management were the leading performers
in revenue growth in 2007, with each business unit reporting double digit revenue growth. Kelly IT Resources, Kelly
Scientific Resources, Kelly Engineering Resources and Automotive Services Group reported year-over-year revenue
declines during 2007.
Americas - PTSA earnings from operations for 2007 totaled $59.2 million, an increase of 1.8% from 2006. The 0.2
percentage point increase in the operating margin reflected a 1.6 percentage point increase in the gross profit rate,
partially offset by a 1.5 percentage point increase in the expense rate as a percentage of revenues.
The Americas - PTSA gross profit rate increased primarily due to growth in fee based income, reduced payroll taxes
and workers’ compensation costs and the benefit of a full year impact of the higher margin Ayers’ outplacement
business, acquired in the second quarter of 2006, and CGR/seven, a creative services staffing firm acquired in the
first quarter of 2007. Americas - PTSA’s share of the reduction in workers’ compensation expense in 2007 was
approximately $1.2 million, compared to a similar adjustment in 2006 of approximately $0.7 million.
Selling, general and administrative expenses increased by 12.6% as compared to the prior year and, as a percentage
of revenues, were 13.3% for 2007 and 11.8% for 2006. The increase in selling, general and administrative expenses
was due to increased compensation related costs, including a full year impact of the Ayers’ outplacement business,
nine months’ impact of CGR/seven, and increased staffing costs related to adding permanent placement recruiters.
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30. International - Commercial
2007 2006 Change
(In millions of dollars)
Revenue from Services $ 1,604.0 $ 1,378.5 16.4 %
Earnings from Operations 10.1 0.6 NM
Gross profit rate 17.6 % 16.9 % 0.7 %
Expense rates:
% of revenue 17.0 16.9 0.1
% of gross profit 96.4 99.8 (3.4)
Operating margin 0.6 0.0 0.6
Translated U.S. dollar revenue from services in International – Commercial for 2007 totaled $1.6 billion, a 16.4%
increase compared to the $1.4 billion reported in 2006. This resulted from a 21.8% increase in fee based income, an
increase in hours worked of 12.0% and an increase in the translated U.S. dollar average hourly bill rates of 3.2%.
Fee based income totaled $53.2 million in 2007 and $43.6 million in 2006. International – Commercial revenue
represented 28.3% of total Company revenue in 2007 and 24.9% in 2006.
On a constant currency basis, revenue increased by 7.4%, fee based income increased 11.6% and average hourly
bill rates decreased 4.8% from 2006. The constant currency change in average hourly bill rates was impacted by
significant growth in lower average wage rate countries, such as India and Malaysia. Constant currency year-over-
year revenue comparisons reflect increases of: 7.3% in the first quarter, 8.8% in the second quarter, 5.8% in the third
quarter and 8.0% in the fourth quarter. Acquisitions in 2007 have contributed approximately 2% to International –
Commercial’s constant currency revenue growth.
International - Commercial earnings from operations in 2007 totaled $10.1 million, a significant increase compared to
net earnings of $0.6 million last year. Earnings from operations for 2007 includes a $5.9 million charge related to the
restructuring of the UK operations and a $5.0 million benefit related to French payroll tax credits.
The 0.6 percentage point increase in the operating margin reflected a 0.7 percentage point increase in the gross
profit rate, partially offset by a 0.1 percentage point increase in the expense rate as a percentage of revenues. The
increase in the International – Commercial gross profit rate primarily reflects the effect of the French payroll tax
credits.
Selling, general and administrative expenses increased by 17.0% as compared to the prior year and, as a percentage
of revenues, were 17.0% for 2007 and 16.9% for 2006. The increase in US dollar reported expenses was due
primarily to the growth in compensation related costs and the $5.9 million UK restructuring charge.
International - PTSA
2007 2006 Change
(In millions of dollars)
Revenue from Services $ 198.5 $ 143.8 38.0 %
Earnings from Operations 2.7 0.6 323.9
Gross profit rate 31.2 % 25.2 % 6.0 %
Expense rates:
% of revenue 29.8 24.7 5.1
% of gross profit 95.6 98.2 (2.6)
Operating margin 1.4 0.4 1.0
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